We previously wrote about the ban on gender discrimination on car insurance which came into effect in the EU on Decmber 21st 2012.
See https://www.moneyguideireland.com/gender-rules-and-insurance-premiums.html
The changes were expected to bring about price increases for younger women and car insurance price drops for younger males . In the past – because young males had a bigger chance of being involved in accidents – their premiums were much higher than those for young females.
Back in June 2012 we did a small comparison of insurance prices for young drivers with provisional licences.
See https://www.moneyguideireland.com/comparison-of-car-insurance-for-learner-drivers.html
In June we saw car insurance price differences of just over €1700 a year when comparing male versus female quotes for the same car and circumstances.
This week we did another quick check with AA Insurance and Liberty Insurance – a couple of the online insurers that will quote for young provisional licence holders.
As expected – the gap between male and female prices has now been removed – both were quoted the same amount in all cases.
Back in June the AA quoted €3241 for Third Party insurance a 20 year old male provisional driver . This week (Jan 2013) the same aged male driver in the same car was quoted €2937 – a drop of €307 . The female driver was also quoted €2937 in Jan 2013 – but back in June 2013 the same aged female was given a quote of €1530. This is a massive increase of €1407 a year – almost 100% increase.
Liberty Insurance also had similar price changes – with a male 20 year old provisional licence holder being quoted €3546 in Jan 2013 and €4899 in June 2012. That is a drop of €1353 a year .